Mexico banking sector set to grow and diversify

2016 ◽  
Keyword(s):  
Economic Activity ◽  
Banking Sector ◽  
Bank Loans ◽  
Financial Inclusion ◽  
Foreign Banks ◽  
Content Type ◽  
Inclusion Process ◽  
International Reputation ◽  
Economic Slowdown ◽  
Improve Access

Subject Mexico is becoming increasingly attractive to foreign banks. Significance Several banks from Europe and Asia are entering the Mexican banking sector to expand their presence in Latin America. Mexico offers them an attractive market in a region that has become much less so in recent years due to the commodities slump and the economic slowdown. Impacts A larger banking sector will facilitate economic activity and improve access to bank loans for businesses and households. The ability to attract more foreign banks will heighten Mexico's international reputation. Competition among banks will increase, benefitting companies and families as well as the financial inclusion process.

Fast growth may avert foreign banks' exit from Hungary

2015 ◽  
Keyword(s):  
Financial Institutions ◽  
Banking Sector ◽  
Prime Minister ◽  
Foreign Banks ◽  
Content Type ◽  
Balance Sheets ◽  
Government Relations ◽  
Local Currency ◽  
Wait And See ◽  
The Government

Subject Prospects for the banking sector. Significance The government is buying a 30% stake in the Austrian lender Erste Bank under a memorandum of understanding (MoU) with the European Bank for Reconstruction and Development (EBRD). The MoU signifies a volte-face by Prime Minister Viktor Orban, whose relationship with foreign-owned banks has been fraught with difficulties since the imposition of a levy on financial institutions in 2010 that drove down earnings and achieved notoriety as one of the highest taxes of its kind in Europe. The government has pledged to reduce the bank tax during 2016-19. Impacts The MoU may not redefine government relations with foreign banks, but could mean more activity on the market by institutional investors. Banks will clean up balance sheets, adopting a 'wait and see' strategy until FX debt relief peters out and the bank tax starts to fall. A return to profitability is unlikely before 2016; much depends on an uptake in corporate and household loans denominated in local currency.

Brazil banks will stay cautious amid fragile recovery

2017 ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Retail Banking ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Risk Averse ◽  
Public And Private ◽  
Content Type ◽  
Private Banks ◽  
Public And Private Sector

Subject Outlook for the banking sector. Significance The two-year recession has made Brazil’s public- and private-sector banks increasingly risk-averse in their lending to households and companies. This is likely to persist in 2017, owing to a very uncertain and fragile economic recovery, high unemployment and elevated levels of private-sector debt. Impacts Less-aggressive lending by national state banks will help public finances and give private banks a chance to increase market share. Spanish Santander will be the only foreign bank capable of competing in Brazil’s retail banking segment in the coming years. Other foreign banks lacking the necessary scale for profitable retail banking will focus on other niches.

scholarly journals Cross-border banking and foreign branch regulation in Europe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucia Gibilaro ◽  
Gianluca Mattarocci
Keyword(s):  
Banking Sector ◽  
Foreign Bank ◽  
Capital Adequacy ◽  
Foreign Banks ◽  
European Economic Area ◽  
The European Union ◽  
Content Type ◽  
Cross Border ◽  
European Banking

Purpose This paper aims to examine the relevance of cross-border activity in the European banking sector, evaluating the role of differences in regulation to explain the level of interest in entering foreign markets. Design/methodology/approach The sample considers all banks in the European Union (EU 28) existing at year-end 2017, and information about the ultimate owners’ nationality to classify local and foreign banks is collected. The analysis provides a mapping of regulatory restrictions for foreign banks and evaluates how they impact the role of foreign players in the deposit and lending markets. Findings Results show that the lower are the capital adequacy requirements, the higher are the amounts of loans and deposits offered by non-European Economic Area banks and, additionally, the higher the probability of having a foreign bank operating in the country. Originality/value This paper provides new evidence on regulatory arbitrage opportunities in the EU and outlines differences among EU countries not previously studied.

scholarly journals BANKING SECTOR ORIENTED FINANCIAL INCLUSION IN INDIA: A LONG TERM PERSPECTIVE

2020 ◽  
pp. 42-59
Author(s):  
Sana Pathan ◽  
Archana Fulwari
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Long Run ◽  
Reserve Bank ◽  
The Government ◽  
Improve Access ◽  
Reserve Bank Of India

Financial Inclusion is an emerging concept. The objective of the government behind 100 percent Financial Inclusion is to have inclusive growth in India. Several initiatives have been taken by the Government of India and the Reserve Bank of India to improve access to financial services. To measure the effectiveness of these initiatives there is need to measure the extent of Financial Inclusion. Financial Inclusion can be measured by gauging the progress in access to and usage of a range of products and services of financial institutions over time. The present study sought to propose an index to measure the extent of banking sector oriented Financial Inclusion in India over a period of time rather than a cross-section study which has been the focus of many a studies. The study used more specific indicators of banks-centric financial inclusion dimensions to gauge the long run trend in Financial Inclusion in India. The results indicate that there is much improvement in Financial Inclusion in India since the implementation of financial sector reforms.

NLD will push Myanmar banking reform in 2016

2015 ◽  
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Foreign Banks ◽  
Sector Reform ◽  
Banking Reform ◽  
Content Type ◽  
Investor Confidence ◽  
Banking Sector Development ◽  
Donor Support ◽  
International Donor

Subject Myanmar banking reform outlook. Significance Myanmar's central bank will issue additional banking licences to an undisclosed number of foreign banks in 2016, it announced on December 14. This is part of the wider effort to modernise and build the capacity of Myanmar's banking sector. Impacts Greater banking sector modernisation and liberalisation would aid domestic business sector growth. International donor support will be needed to help Myanmar's banking sector development. Banking sector reform requires the support of Myanmar's central bank personnel, and consumer and foreign investor confidence.

Italy’s woes expose euro-area governance failures

2016 ◽  
Keyword(s):  
Euro Area ◽  
Banking Sector ◽  
Capital Requirements ◽  
Bank Loans ◽  
The Political ◽  
Political Uncertainty ◽  
Content Type ◽  
Core Inflation

Significance The political uncertainty in Rome is hampering efforts to restore confidence in MPS and poses a challenge to the implementation of the EU’s controversial ‘bail-in’ rules. Impacts Euro-area core inflation is just 0.8%, less than half the ECB’s 2.0% target despite a gradual pick-up in growth. Despite surging nearly 50% from a July record low, the Stoxx 600, the euro-area’s banking sector index, is still 5% down year-to-date. From 2017 to 2019, 550 billion euros of EU banks' senior debt will mature -- a lifeline, if the most vulnerable can survive until then. Further euro-area capital requirements will come in in 2017, but could be introduced gradually to minimise the disruption. Nearly 18% of Italian bank loans are non-performing, three times the euro-area average.

Foreign banks’ faith in Mexico will endure

2017 ◽  
Keyword(s):  
Latin America ◽  
Commercial Bank ◽  
Banking Sector ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Content Type ◽  
International Banks ◽  
Loan Growth ◽  
Double Digit

Subject Mexican banking. Significance On March 10, Japan's Mizuho launched a commercial bank in Mexico, becoming the latest foreign bank to begin operations there. Mexico's banking sector has been one of the fastest-growing and most attractive in Latin America in recent years, with several new players entering and double-digit loan growth. Impacts Major international banks’ continued interest in Mexico shows confidence in an economy and a government under pressure. Banks that are willing to lend heavily will be important for the struggling Mexican economy. Mexican FDI will benefit from investments by foreign banks despite a predicted fall in FDI overall.

Ecuador banking sector is set for a comeback

2018 ◽  
Keyword(s):  
Private Sector ◽  
Central Bank ◽  
Banking Sector ◽  
Bank Lending ◽  
Foreign Banks ◽  
Economic Recovery ◽  
Content Type ◽  
Loan Growth ◽  
Double Digit

Subject Banking sector prospects. Significance Private sector banks in Ecuador enjoyed strong double-digit loan growth last year -- a reflection of the troubled economy’s gradual emergence from recession. That economic recovery, and the pragmatic willingness of President Lenin Moreno to work with the private sector, is generating optimism regarding the prospects of the country’s banking sector. Impacts Strong bank lending is key for economic recovery, allowing firms to increase investments and consumers to spend more. Taking the E-money system from the central bank shows Moreno’s pragmatism vis-a-vis the private sector. The planned sale of state-owned lender Banco del Pacifico could attract the interest of foreign banks.

Foreign banks to bet on Mexico despite risks

2020 ◽  
Keyword(s):  
Private Sector ◽  
Financial Inclusion ◽  
Foreign Banks ◽  
Content Type ◽  
The Government

Significance The contraction is Mexico’s first in ten years and marks President Andres Manuel Lopez Obrador (AMLO)’s first full year in office. Foreign banks nevertheless continue to bet on Mexico, setting aside the uncertainty generated by AMLO’s policies. Impacts Banks’ willingness to lend could be important for the recovery of the troubled economy. The banking sector’s support for some of AMLO’s initiatives will help build private sector faith in them. Banks will increasingly collaborate with the government to improve financial inclusion.

Welfare effects of limiting bank loans

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arup Bose ◽  
Debashis Pal ◽  
David Sappington
Keyword(s):  
Design Methodology ◽  
Banking Sector ◽  
Unintended Consequences ◽  
Bank Loans ◽  
Loan Portfolio ◽  
Content Type ◽  
The Us ◽  
Practical Implications ◽  
Careful Thought

Purpose This paper examines the effects of limiting the number of loans a bank can issue, reflecting a policy recently implemented by the US Federal Reserve. Design/methodology/approach This paper does so in a streamlined model of the banking sector. Findings This paper finds that a binding limit on loans can enhance welfare by motivating the bank to reduce the number of socially unproductive loans it makes. However, the limit can sometimes reduce welfare by inducing a reduction in the number of socially productive loans the bank issues, the quality of the bank’s loan portfolio, and/or the accuracy with which the bank screens loan opportunities. Practical implications The research demonstrates that limits on the loans a bank issues can have subtle and unintended consequences. Consequently, careful thought is warranted before such limits are imposed. Originality/value To our knowledge, the existing literature does not provide guidance on the merits of such loan restrictions.

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